Waters v. Hedberg

496 A.2d 333, 126 N.H. 546, 1985 N.H. LEXIS 371
CourtSupreme Court of New Hampshire
DecidedMay 24, 1985
DocketNo. 84-413
StatusPublished
Cited by22 cases

This text of 496 A.2d 333 (Waters v. Hedberg) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waters v. Hedberg, 496 A.2d 333, 126 N.H. 546, 1985 N.H. LEXIS 371 (N.H. 1985).

Opinion

Batchelder, J.

The question raised in this interlocutory appeal is whether the plaintiffs’ release from liability of an employer, whose liability is based solely upon the negligence of an employee, bars a subsequent suit for negligence against the employee. The Master (R. Peter Shapiro, Esq.), in a recommendation approved by [548]*548the Superior Court (Temple, J.), denied the defendant/employee’s motion to dismiss, ruling that the release of the employer was not a bar to the suit against the employee. We affirm the denial of the motion to dismiss.

This case arises out of an automobile accident which occurred in Exeter on June 9, 1980. The plaintiffs, Elena B. Waters and B. Gordon Waters, sued Prudential Insurance Company of America alleging that the negligent conduct of Arthur Hedberg, acting in his capacity as a Prudential employee and within the scope of his employment, caused the accident. No independent basis of liability other than the doctrine of respondeat superior was alleged against Prudential. Hedberg was not named in the suit. Prudential brought an indemnity action against Hedberg. Prudential’s move to consolidate the indemnity action with the Waters’ suit against it was denied.

The case against Prudential was tried, but before verdict the parties settled the case. The docket was marked, “Neither party. No costs. No further action for the same cause.” Thereafter, the plaintiffs released Prudential and Prudential’s liability insurance carrier from all claims regarding the accident, in exchange for a cash settlement substantially less than the damages claimed.

Following the settlement, plaintiffs sued Hedberg, alleging that his negligent operation of the motor vehicle caused the accident. Hedberg moved to dismiss on the ground that the suit was barred by the doctrine of res judicata and by the release of Prudential, his employer. The motion was denied on the ground that neither res judicata nor collateral estoppel barred the suit. The defendant appeals this ruling. The interlocutory appeal also raises the question of what effect the release granted to the employer has upon the suit against the employee, under RSA 507:7-b.

At the outset, we note that the consent judgment entered on the docket in settlement of the Waters’ suit against Prudential, which states “Neither party. No costs. No further action for the same cause,” is the relevant disposition for determining whether res judicata or collateral estoppel bars the suit against Hedberg. On the other hand, the release of Prudential by the Waterses is the document having legal significance under RSA 507:7-b.

“The heart of the doctrine of res judicata is that a final judgment by a court of competent jurisdiction is conclusive upon the parties in a subsequent litigation involving the same cause of action.” Concrete Constructors, Inc. v. The Manchester Bank, 117 N.H. 670, 672, 377 A.2d 612, 614 (1977). “The same result can follow from a consent judgment resulting in docket markings such as those [549]*549entered in this case.” Id.; Moore v. Lebanon, 96 N.H. 20, 22, 69 A.2d 516, 518-19 (1949).

Defendant Hedberg was not a party to the consent judgment and is bound by the doctrine of res judicata only if he is in privity with a bound party. Sanderson v. Balfour, 109 N.H. 213, 214, 247 A.2d 185, 186 (1968); see R. Wiebusch, 5 New Hampshire Practice, Civil Practice and Procedure § 1870, at 389-90 n.52 (1984). The privity exception applies where the non-party’s interests were in fact represented and protected in the litigation although he was not a formal party to the proceedings. M. Green, Basic Civil Procedure at 212 (1972). In this context, if the employee, though not a party to the suit, takes control of the suit, the judgment will bind the employee. M. Green, supra at 213; cf. Eaton v. Clarke, 80 N.H. 577, 578, 120 A. 433, 434 (1923).

In this case, Hedberg did not take control of the suit. He is, therefore, not protected under res judicata by the consent judgment entered. See Moore v. Lebanon supra.

Nor is Hedberg protected by the rules of collateral estoppel. The doctrine of collateral estoppel “precludes the relitigation of an issue of fact which has been fully and fairly litigated” in a prior action. Loundsbury v. City of Keene, 122 N.H. 1006, 1008, 453 A.2d 1278, 1280 (1982); see R. Wiebusch, supra § 1871, at 391-92. “[Collateral estoppel may be invoked ... by a party to a later case who was not a party or in privity with a party to the earlier case.” Caouette v. Town of New Ipswich, 125 N.H. 547, 554, 484 A.2d 1106, 1111 (1984). The party to be estopped, however, must have been a party or in privity with a party to the prior action. In this case, the “judgment” does not preclude litigation of any issues because the docket markings reflect a judgment for “neither party.”

We next turn to the effect of RSA 507:7-b on the facts of this case. RSA 507:7-b provides as follows:

“Release or Covenant Not to Sue: Joint Tortfeasors. When a release or covenant not to sue is given in good faith to one of 2 or more persons liable in tort for the same injury to person or property or for the same wrongful death, it does not discharge any of the other tortfeasors from liability for the injury or wrongful death unless its terms expressly so provide, but it reduces the claim against the others in the amount of the consideration paid for it.”

In Morrill v. Webb, 123 N.H. 276, 461 A.2d 93 (1983), we interpreted this statute as follows:

[550]*550“When a release or a covenant not to sue is entered into with one joint tortfeasor, it does not discharge any of the other tortfeasors from liability, absent any expression to the contrary. See RSA 507:7-b (Supp. 1979). However, the settlement with one tortfeasor does reduce the claim against the others to the extent of the consideration paid for the release.”

Id. at 279, 461 A.2d at 95 (citing Burke v. Burnham, 97 N.H. 203, 210, 84 A.2d 918, 924 (1951)).

In Burke v. Burnham supra we stated the prior law in New Hampshire:

“‘When one is injured by joint wrongdoers, a settlement with one of them is presumptively in full satisfaction for the injury .... But if the settlement with one is not intended as full satisfaction, the others are released only to the extent of the amount paid.’”

Id. at 210, 84 A.2d at 924 (quoting Masterson v. Railway, 83 N.H. 190, 192, 139 A. 753, 755 (1927)).

RSA 507:7-b, then, changes the prior law, so that now a release of one joint tortfeasor is presumed not to be a release of all, whereas previously, the release was presumed to release all unless a contrary intent was shown.

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Bluebook (online)
496 A.2d 333, 126 N.H. 546, 1985 N.H. LEXIS 371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waters-v-hedberg-nh-1985.